Just A quick question??

[JustOverBroke]

The DW and I will be filing on July 1st we switched banks about 2 weeks ago but did not close out our old account we left only $18.00 in the checking.

We had one of those auto payments posted to the account for $150.00.

Why do banks pay out $150.00 when theres only $18.00 in the account?

Now they say I owe them like $163.00.

Since I'm filing in about 11 days can I just add this to my BK?

I'm filing Ch7.

Hope you can help,Thanks.

[dingdong]

Yes, add the bank.

[music12]

they pay money that's not there so that they can later charge you insane fees. looks like they are charging you around $30.

i agree with dingdong: add the bank. since it's a relatively small amount of money, any look-back periods won't be a problem.

[justbroke]

Why do banks pay out $150.00 when theres only $18.00 in the account?

Because they make $35.00 for doing it.

Actually alot has to do with how the Automated Clearing House (ACH) handles check processing. Checks and other ACH debits, are handled in batches. If a batch doesn't reconcile (because one or two or more checks in the batch has NSF), it's more efficient for the bank to just pay than to go into that specific batch and pull the checks. The banks have all sorts of rules for this and how much they'll let go through, so it's not like you can write a $1,000 check. (Okay, my bank paid a $1,000 check when I had $0.00 in the account!) So some of it is based on the customer and his profile as well... like in my $1,000 incident (which happened right after filing bankruptcy).

At least, that's how I understand it. The Banks feel that it's good customer service not to embarrass you... but they end up making the same amount of money whether they pull the check from the batch or not. (Noting that some banks charge more for a paid overdraft, than a returned check.)